1. Defining Water Quality The Standard-Setting Process
MODULE 5: The Case of Water
Chapter 14
Defining Water Quality The Standard-Setting Process
[raim] 名 霜;白霜
"Water, water, everywhere, nor any drop to drink"
It's from The Rime of the Ancient Mariner by Samuel Taylor Coleridge when the Ancient Mariner is stuck in the middle of the sea.

2. 1. Water Resources Water Resources and Their Interdependence
Surface water
water bodies ________________________, such as rivers, lakes, oceans, streams, springs, wells, or other collectors directly influenced by surface water
Groundwater
Fresh water _________ the earth’s surface, generally in aquifers
Linked together by the __________________
Natural movement of water from the atmosphere to the surface, underground, and back to the atmosphere
Explains the interdependence of water resources

3. Polluting Sources
Point Source
Any ________________ source from which pollutants are released, such as a factory smokestack, a pipe, or a ship
Nonpoint Source
A source that cannot be identified accurately and degrades the environment in a _______, ________ way over a relatively ______ area

4. 2. Overview of US Legislation
Similar to U.S. air quality laws, no federal legislation dealing with water pollution until _____
Even then, federal responsibility was limited
In the 1970s, landmark legislation was passed, the Federal Water Pollution Control Act (FWPCA) of _____
Guides much of today’s policy
Main responsibility for water quality shifted to the federal level
Specific goals for water quality were established
New technology-based effluent limitations were set
Clean Water Act (CWA) of 1977 extended compliance deadlines and strengthened the law on toxic pollutants
FWPCA of 1972 was overly ambitious

5. Current U.S. Legislation
_____________________________ governs policy today
Required states to set up programs for nonpoint sources
Its reauthorization is still pending
Meanwhile, in 2002, Congress passed the Great Lakes Legacy Act, amending CWA to fund addressing contaminated sediments in the Great Lakes basin.

6. 3. Federal Policy Goals (from FWPCA of 1972)
Zero discharge goal
Eliminate release of all effluents into navigable waters by 1985
Fishable-swimmable goal
Requires that surface waters be capable of supporting _________________ activities and the propagation of fish and wildlife by 1983
No toxics in toxic amounts
Prohibit release of toxic pollutants in toxic amounts into all water resources
Interim goal
None of them were met by deadlines, nor have they been achieved

7. Water Pollutants Under the Law
Toxic pollutants
upon exposure will cause death, disease, abnormalities, etc.
Conventional pollutants
identified and well understood by scientists, in forms of organic waste, sediment, bacteria, nutrients, oil, heat…
Non-conventional pollutants
default category
common pollutants produced in large amounts

8. 4. Standards to Define Water Quality Receiving Water Quality Standards (1965 law)
Set by states for each water body
Two components
Use designation: intended purpose of water body; at minimum must meet swimmable-fishable standard
Water quality criteria: biological and chemical attributes to sustain or achieve use designation; pollutant specific

9. State Use-Support Status
FYi
State Use-Support Status
Periodically, states must determine use-support status for each water body
Assess the water body’s present condition and compare it with what is needed to maintain its designated uses
Use-support status is characterized using one of five classifications:
Fully supporting; threatened; partially supporting; not supporting; and not attainable
Findings are reported to Congress as part of a biennial National Water Quality Inventory

10. 5. Analyzing the Standards Absence of Benefit-Cost Analysis
States could use benefit-cost analysis in setting the receiving water quality standards, but they were not required by law to do so
Use designation had to be consistent with national goals, meaning at minimum achieving swimmable-fishable quality, a goal that is solely ____________________
Therefore, no assurance that efficiency is achieved

11. FYi Inconsistency Issues
Standards are not consistent with technology-based effluent limits set at the federal level
In some cases, the limits are met, but the standards are not achieved. Why?
Standards (the objective) are motivated by use
Effluent limits (policy instrument) are motivated by technology, i.e., by what is feasible

12. FYi
Law requires states to identify waters for which the effluent limitations are insufficient
These water bodies are to be labeled "water quality limited" and placed in a priority ranking
For these waters, more stringent controls are set, called total maximum daily loads (TMDLs)
These TMDLs specify the maximum amount of pollution that can be received without violating the standards

13. 6. Updated Benefit-Cost Analysis (Carson and Mitchell’s Analysis of Post-1972 Policy Revisions) Total Social Benefits
Based on ____________________________ (CVM)
CVM can account for existence value and user value
TSB1990 = _______________ ($1990)
Represents the value of improving water quality from nonboatable up to swimmable

14. Total Social Costs
Average two estimates
TSC1988 = $37.3 billon ($1990)
Dept of Commerce data used by Carson & Mitchell
TSC1990 = $50.6 billion ($1990)
EPA projected data
TSC1990 = _______________ ($1990)

15. Benefit-Cost Comparison
Result: ________________
So net benefit is positive
Question: Is allocative efficiency achieved?

16. Marginal Analysis
Approximated with incrementals using Freeman’s (1982) earlier estimates for 1985
MSC1990 = TSC1990  TSC = $44.0B  34.6B = ________ ($1990)
MSB1990 = TSB1990  TSB = $46.7B  20.1B = ________ ($1990)
Since ________________
abatement levels are not efficient
water quality control is likely ______________

17. Benefit Cost Comparison post-1972 policy
At A1990, MSB > MSC 
underregulation
MSC
26.6
$1990 billions
9.4
MSB
A1990 AE
Abatement